17. Key terms
replacement ratio
The replacement ratio shown in the schedule , calculated as the monthly benefit multiplied by 12, divided by the gross profit for the business .
actively involved
Working an average of more than 30 hours per week in the six months prior to the disablement date, inclusive of any periods of approved leave. The date as declared on the original application form applying for the Business Continuity Benefit for the life assured. The term for which the life assured is insured for the Business Continuity Benefit as stated in the schedule. The maximum term for which the Business Continuity Benefit is payable as stated in the schedule . The benefit payment period commences at the end of the waiting period and ceases either 6, 12 or 24 months (whichever is stated in the schedule ) later or when the life assured reaches the end of the benefit term as stated in the schedule , whichever is the earlier. The 6, 12 or 24 month period (whichever is stated in the schedule ) is the total period for which benefits will be payable for all claims arising from the same or a related cause illness or injury.
totally disabled / total disability
See Section 4 of this appendix for the meanings of these key terms.
application time
waiting period
The period stated as such in the schedule for which no Total Disablement Benefit or Optional Partial Disablement Benefit is payable.
benefit term
working hours
The number of hours working as stated at application time for the life assured.
benefit payment period
you/your
The 'Policy Owner' named in the schedule .
business
The business of the ‘Policy Owner’ named in the schedule .
disability/disabled
The illness or injury giving rise to the claim for total disability or partial disability.
disablement date
The date the life assured became totally disabled .
partially disabled / partial disability person
See Section 5 of this appendix for the meanings of these key terms. An individual, employer, company, partnership, association, organisation or trust. The number of hours per week that the life assured is able to work as stated by a registered medical practitioner . Sovereign may request the second opinion of another registered medical practitioner.
post-disability working hours
863 TCB-BC version 3 Effective 21 May 2019
Page 5 of 5
Powered by FlippingBook